The National Telecom Regulatory Authority approves the establishment of Wataneya - GSM

Telecom Egypt's proposal to the NTRA put forward a 50% share for each - TE and Vodafone Group in Wataneya. The Company will own 51% of Vodafone Egypt meaning TE's share in Vodafone Egypt will amount to 25.5% buying the share for an average of LE23.3.

TE will give up its license for operating a GSM network for accessing 1800 MHz frequency spectrum, concurrently Vodafone and Mobinil will pay LE1billion to NTRA to have access of the 1800 MHz frequency spectrum. The NTRA will return the sum previously paid for the license to TE, which will allow the company to have enough liquidity to acquire a substantial effective share in Vodafone Egypt.

NTRA Board asserted that it will offer the third license to potential investors when market conditions progress and offers seem feasible.

This venture aims to fulfill

Avoiding financially burdening TE; which may affect the successful performance of the Company; its market value and its nationwide expansion plans.

Utilizing necessary liquidity for TE by giving up the third license which will enable the Company to penetrate the mobile services sector which will in return enhance TE's market value

Relieve TE from investing in GSM network equipment worth of $250million , thus decrease the demand on foreign currency

Maximize the benefit from investments made so far in the existing GSM networks; (amounting to LE8billion) which can accommodate the forecasted increase in the subscriber/customer base.

TE's penetration and involvement in the mobile sector through its partnership with the Vodafone Group is considered a successful investment for TE to promote and increase its market value.